Hi all,
I just found out yesterday that the finance for our third IP fell thru!
Dissapointing obviously but now we have the chance to re structure our loans and wanted some advice…
Our PPOR we owe $117k @ i/rate of 4.97%
IP 1: is set up correctly and is basically cash flow netural
IP 2: was my old PPOR and as such is set up incorrectly, currently owe 250k and is fixed principal and interest at 6.69% until April 2011
If the latest property had gone thru, I was happy to pay the break fee of about 3k and set it up i/only.
My question is this… by going interest only will free up about $700 p/week which i plan on paying down the PPOR, with rates likely to rise in the near future, what are peoples thoughts on paying the break fee and then reassessing having another go at getting into the market in 12 months???
On a side issue, to arrange a depreciation schedule, how can I find out when a house was built?
Any help will be much appreciated!
Harrison
Difiicult to now why the finance was declined on your 3rd IP but certainly doesnt sound like the loans are structured correctly.
Must admit we are finding investors are picking up the slack left by some of the first home buyers and buying in droves.
I dont think there has ever been a better time to buy.More important question i guess is do you now why the loan was declined and can your Broker suggest ways of getting the deal through this time round.
Richard Taylor | Australia's leading private lender
I understand they arent structured properly but am leaning towards paying the break fee of 3k and setting that loan up as I/O which I should have done from the start.
Finance was due mainly they say to a $900 default on a phone bill of my partner from 2006. Even though this default was paid out in 2006 we were told most lenders wont touch our application, so plan B is to pay down our PPOR and try again soon.
If the loan isnt mortgage insured then i am suprised your Bank have told you that is a problem.
If it has been structured correctly then i can see how that would be an issue do it might be case of getting your Broker to try an alternative lender.
Obviously without the rest of the hard data it is difficult to comment further.
Richard Taylor | Australia's leading private lender
On a side issue, to arrange a depreciation schedule, how can I find out when a house was built?
Your local council (bless them) will usually be able to tell you when a house is built. Though it depends how far their records go. A Dep Sched may be worthwhile regardless of the age of the property. The ATO will adjust your tax returns for the previous 3 or 4 years. We did just that on an old IP and it was a pleasant surprise.
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